Gold Prices Plummet to Two-Week Low Amid Strong US Jobs Data
Gold prices have fallen for the second consecutive week, settling at $4,430 per ounce. The decline is attributed to stronger-than-expected US employment data, which reinforced expectations of a tighter monetary policy stance.
The US economy added 162,000 jobs in August, surpassing market expectations of around 56,000. This robust labor market has reduced the risk of significant economic damage from increased interest rates or further rate hikes if inflationary pressures persist.
Despite the short-term pressure on gold prices, several factors continue to support the metal over the medium and long term, including geopolitical risks, concerns over US debt and fiscal deficits, and sustained investment demand for gold as a safe-haven asset during periods of uncertainty.